Judge Grants Facebook Users $20 Million Settlement

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Judge Grants Facebook Users $20 Million Settlement

Facebook is scheduled to pay $20 million for including users names and profile photos in their “Sponsored Stories” ad program without anyone’s approval.

This is a class action lawsuit that was filed by 5 Facebook users in April 2011, 3 months after Facebook first launched their targeted advertising program.

The judge that initially rejected Facebook’s initial proposed settlement was Judge Richard Seeborg. The judge initially ruled that cash payments to the sites 110 million users was impractical considering the sheer volume of payments that would have to be made.

The new revised deal is with a $20 million settlement fund from which class members, or Facebook users who have been in Sponsored Stories without their permission can make a claim to receive a cash payment up to $10.

A judge ruling recently ordered Facebook to let users opt out of having their info used in advertising programs on Facebook through endorsements or Sponsored Stories.

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